Rome’s hesitation over SAFE defense allocation draws frustration across EU

Italy is delaying the execution of a €14.9 billion loan agreement under the European Union’s SAFE defense program, a hesitation that is preventing other member states from accessing unallocated funds.

The Italian government has failed to finalize the exact amount it intends to borrow due to an ongoing energy crisis and internal political debate, effectively holding other European nations “hostage” ahead of a year-end deadline for fund redistribution, according to a report by Euronews.

Rome had previously requested €14.9 billion in loans—an application that was swiftly approved by both the European Commission and the Council of the European Union. However, the administration has yet to issue a final decision regarding the exact amount it will draw down.

Italian Foreign Minister Antonio Tajani stated this week that his country has “reserved” the full €14.9 billion as a maximum threshold.

Tajani noted that the government will only determine the final loan volume toward the end of the year, adding that he expects the eventual figure to range between €6 billion and €9 billion.

Eastern bloc frustrates over indecision

Rome’s reluctance is causing growing irritation across Europe, Euronews reported. While 17 EU member states have completed their formal agreements with the European Commission, they remain unable to access unclaimed funds because of Italy’s position.

Eastern flank countries, including Poland and Lithuania, are facing particular constraints as they seek additional resources beyond their initial allocations.

Under SAFE framework regulations, all unspent resources must be redistributed by the end of the year. Euronews reported that if Italy continues to delay, the European Commission could formally restrict Rome’s application in September, opening the remaining pool of approximately €10 billion to applications from other member states.

The Security Action for Europe (SAFE) operates as an EU financing mechanism designed to provide low-interest loans to help member state governments bridge gaps in their military capabilities and maintain continued support for Ukraine.

Approved by EU ambassadors in May last year to support the bloc’s rearmament, the SAFE loan facility has a total capacity of €150 billion.

The program forms part of the broader €800 billion “ReArm Europe” initiative announced by the European Commission in March.

Energy crisis and domestic politics stall progress

Italy’s cautious approach stems from a combination of domestic political pressures and economic factors. The country is contending with the impact of rising energy costs linked to the closure of the Strait of Hormuz, leading the Italian government to request fiscal flexibility from the EU to handle energy expenditures.

Concurrently, Italy’s ruling coalition—comprising Fratelli d’Italia (Brothers of Italy), Lega (League), and Forza Italia—faces intensifying pressure from its far-right wing, which has criticized increased defense spending ahead of upcoming elections. Italy must hold its next parliamentary elections no later than Dec. 22, 2027.

Euronews previously reported in May that despite reserving €14.9 billion under the SAFE program, Rome subsequently decided to request only €4 billion to €5 billion to cover existing signed contracts.

Prime Minister Giorgia Meloni and Foreign Minister Tajani justified the move by emphasizing the need to prioritize the energy crisis. Rome missed the deadline to submit its SAFE projects after requesting budget flexibility from Brussels for energy spending.

“We cannot tell our citizens that there is only money for defense,” Meloni said regarding the situation.

Italian daily La Repubblica also reported persistent disagreements between Meloni and other EU leaders concerning Ukraine. At the end of June, Germany’s Frankfurter Allgemeine Zeitung (FAZ) reported that a draft text intended for consensus at the NATO Summit in Ankara envisioned maintaining annual support for Kyiv at €70 billion through 2027, matching the 2026 commitment level.

However, Italy withheld its approval for the draft, objecting to long-term financial commitments of that scale for Kyiv.